The Pros and Cons of Credit Cards

The Pros and Cons of Credit Cards from North Carolina Lifestyle Blogger Adventures of Frugal Mom

Credit card use is controversial. While some people are for using credit cards, many people are against them. It is important for you to look at the pros and cons before you use a credit card.


  • Build Credit

If you use your credit card the right way, then you will be able to build credit. You will be able to get better interest rates on mortgages and auto loans if you have good credit. You may also be able to get better insurance rates.

  • Earn Rewards

Many credit cards have rewards. You can get a cash back or points if you spend a certain amount of money. You can redeem your points for things like movie tickets and gift cards.

  • Track Your Spending

If you only use cash, then it can be harder for you to keep track of your spending. A credit card makes it easy for you to keep track of your spending. You will get a statement every month. You will know exactly where your money is going.

  • Emergency Protection

You should have enough money in your savings account to cover you for six to 12 months. However, it is hard for most people to achieve this goal. This is where a credit card can come in handy. You can use your credit card to pay for an unexpected expense.

  • Fraud Protection

If someone steals money from you, then there really is not much that can be done about it. However, if there are fraudulent charges on your credit card, then you will not be held responsible for them. The Fair Credit Billing Act does not hold people liable for fraudulent purchases that are more than $50. All you have to do is report the unauthorized charge to your credit card company.


  • Overspending

Many people who have a credit card see it as an infinite amount of money. That is why you may be tempted to spend more money than you have.

  • Credit Card Debt

Once you get into credit card debt, it is hard to get out of it. Most credit card companies charge you interest. This interest is added to the balance. That is why even if you are making payments on time, you may still have credit card debt for a long time.

  • Negative Impact on Credit

If you miss one payment, then you may get a negative report sent to your credit report. This can cause your credit score to drop. Additionally, if you have a high credit card balance, then your credit score may drop.

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